Cash For Clunkers Rejections

Cash for Clunkers was the incredibly successful program that offered consumers a rebate of up to $4,500 to turn in their ‘clunker’ for a more fuel efficient car. The program boomed car sales for a short time and gave the failing car companies some much needed (short-term) relief. Now that the program is over, consumers still have a multitude of questions regarding how the money was paid out, how it is going to be paid to those waiting, and who got rejected.

60,000 clunkers rejected from the Cash for Clunkers program?

This is the rumor that’s circulating around the internet the most today. For some reason, consumers are raiding Google to find out about these 60,000 rejected clunkers and how that could happen in a program that was suppose to help everyone. Well, it’s not all it seems to be. While the bloggers are having a field day with this one, the truth takes a little more research.

The government has paid or cleared $2.38 billion of the $2.87 billion worth of dealer vouchers submitted, the Transportation Department said today in a statement. The agency said it has rejected 8.8 percent of applications and is still reviewing 8.1 percent. (Bloomberg)

The truth of this matter is that the dealerships themselves dropped the ball somehow by not information their consumers of all the rules, and now they have the opportunity to make up for it by resubmitting applications. The main reason for many applications being rejected was due to minor details of the rules not being followed such as late car registration payments. Sure, it will take longer for consumers to get their Cash for Clunkers rebates, but the answer to this question is not exactly what it seems.

What do you do if your dealership has to resubmit?

If you are one of the many who purchased a vehicle under the Cash for Clunkers program from a dealership that has been rejected and must resubmit their application, all you can do is wait. If your waiting, and your dealer asks for you to pay in full for the car when you have not yet received your rebate, they are breaking the rules of the program and you have the right to turn them in.

How much did the program help the car companies?

While overall sales are still down compared to recent years, the Cash for Clunkers program has given car companies hope that things are turning around. For a few weeks, their numbers were up, and although they’ve dropped back down, it was encouraging to see consumers are still in need of new cars and are willing to buy if the incentives are there.

While foreign car companies did better in car sales, GM, Ford, and Chrysler accounted for almost 39% of the total 690,000 cars purchased through the program.

A preliminary analysis of the program by the Obama administration said that third-quarter economic growth has been 0.4 percent higher because of auto sales in July and August. In addition, G.M., Ford and Honda all announced that they would increase production at some United States plants because of the increased demand generated by cash for clunkers. (New York Times)

How are consumers feeling about the program?

Eight in 10 consumers said they were satisfied with the way the program was run with another 55 percent of consumers wishing that the program could be reinstated.(Reuters)

What cars were the top sellers?

The top four purchased cars under the Cash for Clunkers program was the Toyota Corolla, Honda Civic, Toyota Camry and Ford Focus. All foreign makes, these cars had the best fuel economy. The Ford Escape was ranked 5th, while the Honda CRV was 6th. The Chevy Silverado, far from a fuel efficient vehicle, ranked in the top ten, as well as the For F150.

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